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Purchasing foreclosures can be confusing to the
average buyer, so we have put together a List of questions that we
hope you will find helpful.
What is different about purchasing a
foreclosure?
The actual procedure is the same except that you are purchasing the
property directly from the lending institution. There are
additional addendums which must be signed. One addendum that is
typical is the "As Is" addendum.
What is an “as is” addendum?
Lending institutions sell these properties in their current
condition. You have the right to have inspections on the property,
but the owners will not make any repairs to the property. The List
prices reflects the condition of the property. After the
inspections have been completed, you have the right to either void
or proceed with the agreement of sale. You will have a limited
amount of time to have the inspections completed and this time
frame is on the addendums.
How do I view the properties?
We will provide
you with addresses and allow you to drive by the properties. Before
you view the properties, you need to be approved by a lender with a
written Loan commitment or Pre-approval letter. If you are paying
cash, we will need a verification of funds.
How much of a down payment is required?
Down payments can vary depending on the mortgage company and the
type of loan that you are getting. All our foreclosures typically
require a minimum of $1000 earnest money. You are entitled to
receive your earnest money back if the inspections are done on time
and you find the property unsatisfactory.
Are there any liens on the property?
Typically No, the foreclosure process clears all liens that were on
the property.
Can I finance a foreclosure?
Yes, however not all properties can qualify for a mortgage. Some
properties need too many repairs and cash is required to purchase
these types of properties. There are some special mortgage products
that will lend money for these repairs. Please call Caroline
Orr at (314-323-6470) for details.
What condition are the properties in?
Remember that these homes are being sold in "As Is” condition, with
the List price reflecting the condition. That is why it is
important for you to have inspections done so you clearly
understand the condition of the property. Most homes will need a
minimum of paint, carpeting and decorating. However, some
properties will need major repairs and /or replacement of
mechanicals.
What are the terms of the offer?
All real estate taxes are prorated as of the date of closing. If
the municipality requires a certificate of occupancy or any other
certifications, they are the buyer's responsibility. Some
municipalities will issue a conditional certificate. In this
instance, the buyer will have a certain amount of time to complete
repairs called for by the governmental authority Seller may
requests that buyer closes at Seller’s Title Company. The seller
then pays for the title insurance and it makes for a much smoother
transaction.
For more information or a
list of foreclosures, contact Caroline Orr at
caroline@alexrlty.com
or (314) 323-6470.
Source: Alexander Realty
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